Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated and accounted for using the equity method. At February 28, 2026, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); SES (49%); WAVE (50%); and Workhorse (20%).

On October 16, 2025, we divested our 49% interest in the composite business of the SES joint venture, resulting in a loss of $2,950, recorded in miscellaneous income (expense), net in the consolidated statement of earnings for the current year period. In exchange for our interest in the divested assets, we received common shares of both Hexagon Composites and Hexagon Purus. Refer to “Note O – Fair Value Measurements” for information regarding the fair value measurement of these common shares.

We received distributions from unconsolidated affiliates totaling $105,481 during the current year period. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $109,592 and $103,767 at February 28, 2026 and May 31, 2025, respectively. In accordance with the applicable accounting guidance, we have reclassified the negative balances to distributions in excess of investment in unconsolidated affiliate within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will immediately recognize any balance classified as a liability as income.

We use the cumulative earnings approach to determine the cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities unless the cumulative distributions exceed our share of the cumulative equity in the net earnings of the joint venture. In such cases, the excess distributions are considered returns of investment and are classified as investing activities in our consolidated statements of cash flows.

WAVE and ClarkDietrich are included within the Building Products segment, while the SES and Workhorse joint ventures are reported within Other. The following tables summarize financial information for our unconsolidated affiliates for the periods presented:


	Three Months Ended						Nine Months Ended
	February 28,						February 28,
	2026			2025			2026			2025
WAVE
Net sales	$	122,245		$	118,357		$	377,695		$	358,889
Operating income		56,635			54,681			181,785			168,111
Depreciation and amortization		1,512			1,436			3,941			3,797
Interest expense, net		3,813			4,032			11,644			12,676
Income tax expense		88			70			204			267
Net earnings		52,847			50,531			170,598			155,736

ClarkDietrich
Net sales	$	274,314		$	271,184		$	846,920		$	863,486
Operating income		23,758			36,942			62,427			108,521
Depreciation and amortization		5,194			3,997			14,275			11,804
Interest expense (income), net		(248	)		6			(138	)		(100	)
Income tax expense (benefit)		(70	)		312			(110	)		898
Net earnings		22,902			37,944			63,169			111,840

Other
Net sales	$	56,037		$	70,258		$	201,868		$	246,087
Operating loss		(5,043	)		(8,129	)		(9,295	)		(7,945	)
Depreciation and amortization		2,209			1,972			6,612			7,535
Interest expense, net		188			243			633			992
Income tax expense (benefit)		7			(24	)		323			147
Net loss		(5,206	)		(8,432	)		(10,955	)		(7,665	)